Moody's: Turkey downgrade review hinges on new government’s policies

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LONDON, June 26 (Reuters) - Credit rating agency Moody’s said on Tuesday that a review on a possible downgrade of Turkey’s sovereign credit rating will hinge on what policies the country’s government pursues following President Tayyip Erdogan’s election victory this week.

“Turkey’s rating review announced earlier in June will focus on the incoming government’s capacity and intention to implement policies that would promote sustainable growth and protect the government’s fiscal strength,” Moody’s said in a statement.

“Such policies will be key to restoring confidence in the economy and provide greater assurance of Turkey’s ability to obtain the requisite funding for its large current account deficit and to meet its external repayment requirements.” (Reporting by Marc Jones, editing by Karin Strohecker)